Summit Ridge Group, LLC and TMF Associates, leading financial and industry consulting boutiques focused on the telecom, media, and satellite industries, are pleased to announce the release of their joint white paper, "Spectrum for Emerging Direct-to-Device Satellite Operators". This detailed analysis examines the technological, regulatory, and economic challenges to finding appropriate spectrum for direct-to-device services.

"There is enormous industry and investor interest in the emerging D2D market, but we believe we are the first to comprehensively address the spectrum challenges they face," said Armand Musey, president of Summit Ridge Group. "Much attention has been paid to re-use of terrestrial spectrum for D2D, but satellite spectrum has advantages in terms of global harmonization, nationwide availability, and cost," said Tim Farrar, president of TMF Associates.

Direct-to-device (D2D) services are revolutionizing satellite communications by enabling seamless connectivity between satellites and standard consumer devices such as smartphones and IoT sensors. This technology promises to extend connectivity to even the most remote corners of the globe, bridging critical coverage gaps. However, the vision of near-universal connectivity is not without challenges. Spectrum scarcity and competing demands from terrestrial and satellite services make efficient spectrum allocation a critical hurdle for both new entrants and incumbent players.

Key Insights From The White Paper

1. Spectrum Allocation: The Pivotal Challenge

Existing Mobile Satellite Services (MSS) bands—L-band, Big LEO, and 2 GHz—offer viable options for D2D deployment. Among these, the underutilized 2 GHz band presents the most flexibility and potential for supporting high-capacity D2D applications. Co-channel frequency sharing with incumbent MSS users poses significant challenges, particularly in safety-critical bands like L-band and Big LEO. Innovative approaches, including commercial partnerships, are emerging as pragmatic solutions to balance the needs of MSS incumbents and D2D entrants.

2. Market Dynamics and Strategic Positioning

Market leaders such as Apple, Globalstar, AST SpaceMobile, and SpaceX are investing heavily in D2D, showcasing the market's transformative potential. Apple's partnership with Globalstar and AST's agreement with Ligado underscore the growing importance of MSS spectrum for D2D services. While text-based and emergency services are leading initial deployments, future iterations promise voice and higher-speed data capabilities. However, these future capabilities will require significant spectrum resources and technological optimization while facing uncertain consumer willingness to pay.

3. Regulatory and Technical Realities

Current regulatory frameworks, including the FCC's Supplementary Coverage from Space (SCS) rules, provide a foundation for D2D operations, but global spectrum harmonization of terrestrial bands remains an elusive goal. Technological constraints, including the limitations of omnidirectional antennas in consumer devices, underscore the need for tailored solutions in spectrum coordination and system design.

The 2 GHz MSS band is identified as a promising frontier for next-generation D2D networks due to the significant challenges associated with the Big LEO and L-band MSS spectrum. The Big LEO MSS band is already fully utilized, leaving no additional spectrum available for new entrants. Moreover, co-channel sharing in this band is fraught with risks:

Safety and Mission-Critical Communications: Sharing spectrum in the Big LEO and L-band MSS frequencies could compromise emergency and mission-critical services, making these bands unsuitable for further allocations.

Technological Constraints: Current technological limitations, such as the inability of consumer devices with omnidirectional antennas to effectively manage spectrum sharing, further hinder the feasibility of co-channel use in the Big LEO band.

In contrast, the 2 GHz MSS band offers much-needed flexibility and capacity, with fewer regulatory and technical hurdles and minimal incumbent use. Leveraging this spectrum will enable high-power D2D applications while addressing the growing demand for seamless global connectivity. Commercial agreements between D2D providers and MSS incumbents are emerging as the most viable path forward, accelerating D2D deployments without compromising critical communication systems. By focusing on the 2 GHz MSS band, the D2D proponents can unlock the full potential of D2D services, ensuring a robust and reliable framework for future advances.

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